{"id":7894,"date":"2022-01-26T19:06:35","date_gmt":"2022-01-27T00:06:35","guid":{"rendered":"https:\/\/360mediations.com\/en\/?p=7894"},"modified":"2022-01-26T19:06:38","modified_gmt":"2022-01-27T00:06:38","slug":"innocent-partner-fixed-with-the-liability-of-defrauding-partner","status":"publish","type":"post","link":"https:\/\/360mediations.com\/en\/innocent-partner-fixed-with-the-liability-of-defrauding-partner\/","title":{"rendered":"Innocent Partner Fixed with the Liability of Defrauding Partner"},"content":{"rendered":"\n<p style=\"text-align: justify;\"><strong>Innocent Partner Fixed with the Liability of Defrauding Partner.\u00a0 <\/strong>This case reveals the importance of picking your partners wisely.\u00a0 In this case, it was a law firm where one partner defrauded a lender who lent money to the law firm.\u00a0 The loans where to help prosecute client claims, and loans were to be repaid once cases settled.\u00a0 When the lender found out that this wasn\u2019t always happening, the law firm was sued.\u00a0 Later it would be discovered that many of the loan documents were forged by the fraudster partner (ie: they were supposed to be signed by clients of the firm, but the lawyer signed them instead).\u00a0<\/p>\n<p style=\"text-align: justify;\">The defrauding partner died, and the innocent partner pursued.\u00a0 This case is a solemn reminder that innocent partners are equally exposed.\u00a0 In this case, judgment was rendered in excess of $1M, with the court highlighting that despite the fact that the innocent party had nothing to do with the fraudulent activities, the innocent partner:<\/p>\n<p style=\"padding-left: 40px; text-align: justify;\">\u201c\u2026is liable under the <em>Partnerships Act<\/em>, RSO 1990 c. P.5 for the debts and obligations reflected in those instruments. This liability attaches to a partner despite the fact that the partner did not participate in or authorize the acts of another partner on which the liability is based: <em>Strother v. 3464921 Canada Inc<\/em>., 2007 SCC 24 (CanLII), [2007] 2 SCR 177, at paras 105-108.\u201d<\/p>\n<p><strong><em>Lifeline Litigation Loans Inc. v. Hanson<\/em><\/strong>, 2022 ONSC 489<\/p>\n<p><a href=\"https:\/\/www.canlii.org\/en\/on\/onsc\/doc\/2022\/2022onsc489\/2022onsc489.html\">https:\/\/www.canlii.org\/en\/on\/onsc\/doc\/2022\/2022onsc489\/2022onsc489.html<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Innocent Partner Fixed with the Liability of Defrauding Partner.\u00a0 This case reveals the importance of picking your partners wisely.\u00a0 In this case, it was a law firm where one partner defrauded a lender who lent money to the law firm.\u00a0 The loans where to help prosecute client claims, and loans were to be repaid once&hellip; <a class=\"more-link\" href=\"https:\/\/360mediations.com\/en\/innocent-partner-fixed-with-the-liability-of-defrauding-partner\/\">Continue reading <span class=\"screen-reader-text\">Innocent Partner Fixed with the Liability of Defrauding Partner<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[17,134],"tags":[145,144],"class_list":["post-7894","post","type-post","status-publish","format-standard","hentry","category-damages","category-professional-negligence","tag-innocent-partner","tag-partnership-act","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Innocent Partner Fixed with the Liability of Defrauding Partner - 360Mediations<\/title>\n<meta name=\"description\" content=\"An the innocent partner is liable for the debts and obligations of the partnership caused by the fraud on another partner.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/360mediations.com\/en\/innocent-partner-fixed-with-the-liability-of-defrauding-partner\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Innocent Partner Fixed with the Liability of Defrauding Partner - 360Mediations\" \/>\n<meta property=\"og:description\" content=\"An the innocent partner is liable for the debts and obligations of the partnership caused by the fraud on another partner.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/360mediations.com\/en\/innocent-partner-fixed-with-the-liability-of-defrauding-partner\/\" \/>\n<meta property=\"og:site_name\" content=\"360Mediations\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/360Mediations-120028596572318\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/360Mediations-120028596572318\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-27T00:06:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-27T00:06:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/360mediations.com\/en\/wp-content\/uploads\/2022\/01\/COURT-DECISIONS-360MEDIATIONS-1x1-1.png?fit=406%2C322&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"406\" \/>\n\t<meta property=\"og:image:height\" content=\"322\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"David M. 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